Galilee Basin test pit opens coal mining future

By Amy Phillips, Chrissy Arthur and Julia Harris

For the first time, coal is being mined from a test pit in the Galilee Basin in Queensland's central-west. Hancock Prospecting has launched a 100,000 tonne test pit from its proposed multi-billion dollar mine near Alpha.

The historic occasion was marked by the unveiling of an official plaque by Martin Ferguson the Federal Minister for Resources and Energy and Hancock Prospecting chairman, Gina Rinehart and included mining executives, state politicians, local government and the local community.

Paul Mulder is the managing director of coal at Hancock Prospecting, he said they wanted to officially recognise such a milestone in the project development.

"It was a momentous occasion; it was history creating and that was recognised by our chairman, Mrs Rinehart as well as [Minister] Martin Ferguson.

"I guess the exciting thing for us is that it is a cleaner coal, it has a very low sulphur, ash and gas content," he said.

The Galilee Basin is being mooted as rivalling the Hunter Valley in the future in terms of coal production.

Mr Mulder said operating the test pit is a significant milestone for the company which is hoping to begin full operation of the mine in 2014, pending government approval, permits and finance.

"It was the first time that mining commenced in the Galilee Basin, which is obviously fairly significant based on how large the planned coal mines that we have on the books at the moment, with Alpha and Kevin's Corner being up to 60 million tonnes.

"So I guess the importance of it is that this would rival some of the largest coal mines in the world," he said.

More than 100 people will be employed at the test pit where they're mining to test the quality and consistency of thermal coal.

The coal from the test pit will be hauled out by truck and then loaded onto the rail system from Emerald.

Mr Mulder said the aim will be to deliver the first test shipments to Asia next year.

"Opening up the test pit is also very important because you get a good feel for how the deposit will perform.

"There was a lot of people involved and a lot of people very interested in the project at the state and federal levels of government with potential investors and customers in the Asian region who are planning to burn this coal," he explained.

Rob Chandler is Mayor of the Barcaldine Regional Council, he said the test pit project is significant.

"Not just for our local economy but for Queensland and Australia's economy."

He said there's an opportunity for some locals to gain employment with the mine and he also said that the mining company will be responsible for the upkeep of the roads, which will be challenging.

"They're going to have some real issues there with the wet weather; they've got trucks falling through there at the moment.

"If they have a dry summer they'll keep marching ahead but if it's a wet summer as predicted they're going to have all sorts of challenges on that Hobartville road," he explained.

Councillor Chandler also took the opportunity at the official opening of the test pit to catch up with Hancock Prospecting's, Gina Rinehart.

He said he talked to her about the social infrastructure for Alpha and Jericho.

"Gina Rinehart has got a very, very good track record with social issues and Indigenous issues and I think she'll work very well with the community," he said.

Locals in Alpha say that business has not really picked up despite the activity with the first test pit in the Galilee Basin.

Judy Acutt from Alpha Merchandise said most of the mines needs are being bought in rather than sourced locally.

"Well you'd certainly hope it [business] would pick up as a result of the mines coming in but really once it's all established.

"My personal feeling is that everything's going to be contracted and the contractors will just pull from wherever they can get the cheapest which probably won't be Alpha," she explained.

Ms Acutt said there's also a desperate need for more medical services in the town if the population boom goes ahead as predicted.

"We might get a doctor in town and that would be fantastic.

"It would be great to get a QAS ambulance and a paramedic; we don't have that at the moment, we have volunteers who drive our ambulance.

"Hopefully if the population does increase, the school might get a bit bigger and we might get Year 12 out here.

"Things like that would be wonderful for the town," she said.

Ms Acutt said she's also concerned about the upkeep of the local roads and would like to see more communication between Alpha locals and the Barcaldine Regional Council.

Mayors watch on as Federal Minister Martin Ferguson and Gina Rinehart (Hancock Prospecting) prepare to unveil a plaque to mark the start of the first mining activity in the Galilee Basin.
(Sally Cripps - Audience contribution)